MANAGEMENT 5440 – In the VRIO framework only tangible resources

MANAGEMENT 5440 – In the VRIO framework only tangible resources

Subject: Business    / Management
Question
QUESTION 1

In the VRIO framework only tangible resources are easier to imitate compare to intangible resources.
True

False

QUESTION 2

An MNC will prefer a licensing agreement if it fears that its intellectual property might be misused by the partner.
True

False

QUESTION 3

A franchise is an agreement that allows one party to use a patent or a technology in exchange for payment to the other party.

True

False

2 points

QUESTION 4

Expanding internationally to a market to follow the expansion of a major customer, is an example of a proactive reason for going international.

True

False

2 points

QUESTION 5

Which of the following elements is not used in assessing resources in The VRIO framework
A.

Organizationally embedded.
B.

Rare.
C.

Valuable.
D.

Sustainable

2 points

QUESTION 6

Greenfield mode of entry is an example of outsourcing effort by an MNC.

True

False

2 points

QUESTION 7

In a market with many sellers but only a few customers, the sellers tend to have the more bargaining power.

True

False

2 points

QUESTION 8

According to the five forces model a foreign market that has high level in each of the five forces is a good profitable market to enter.

True

False

2 points

QUESTION 9

A large firm in a small domestic markets will be a slow internationalizer.

True

False

2 points

QUESTION 10

Consumer products(e.g. food or fashion) MNCs, are more likely to choose a standardization (global) strategy in their expansion.

True

False

2 points

QUESTION 11

Of the following modes of entry which involves the highest financial risk:
A.

Joint venture
B.

Franchising.
C.

Licensing.
D.

Direct exporting.

2 points

QUESTION 12

According to the resource based view, which of the following is a tangible resources or capability of the firm:
A.

Cash in the bank
B.

Brand name
C.

Organizational Structure
D.

Corporate Culture

2 points

QUESTION 13

An MNC that deals with high tech products for business use, can compete better by adopting a __________ Strategy
A.

Multi-domestic
B.

Diffrentiation
C.

Adaptation
D.

Global (standartization)

2 points

QUESTION 14

A company that generates 60% of its profit from exporting activities to over 25 countries can’t be classified as an MNC.

True

False

2 points

QUESTION 15

The five forces framework was developed to analyze domestic industry structure, and thus shouldn’t be applied globally to analyze the competitive structure of foreign markets.

True

False

2 points

QUESTION 16

A(n) ________ fit best a company that is following a global niche strategy
A.

International division structure
B.

Matrix structure
C.

Transnational network structure
D.

Product division structure

2 points

QUESTION 17

Of the following modes of entry which provides the most control over technology and brand?
A.

Licensing.
B.

Acquisition of a local firm
C.

Franchising.
D.

Joint venture

2 points

QUESTION 18

A firm’s____ are its tangible and intangible assets a firm uses to choose and implement its strategies.
A.

Core competencies
B.

Resources
C.

Dynamic capabilities
D.

Net worth

2 points

QUESTION 19

Once an MNC chose a mode of entry to a market it should stick with this mode of entry for their ongoing global expansion.

True

False

2 points

QUESTION 20

If Company A and Company B both have valuable assets that are identical, than for A to gain a competitive advantage over B, A must:
A.

Perform SWOT analysis to discover its other strengths
B.

Deploy its assets differently (e.g. different countries)
C.

Find a reason to sue B for imitating.
D.

Perform a 5 force analysis to reveal a sustainable competitive advantage

2 points

QUESTION 21

A main feature of a strategic alliance mode of entry is the creation of a new company by the strategic alliance partners.

True

False

2 points

QUESTION 22

Which of the following is not true about a global strategy (standardization)
A.

It is requires more centralize decision making
B.

It is the best approach to differentiate your products around the globe
C.

It is based on the cost leadership approach of the five forces model
D.

It focuses inachieving economy of scale

2 points

QUESTION 23

According to the VRIO framework a temporary competitive advantage is a result of a resource being:
A.

Valuable and rare, costly to imitate and not organizational embedded
B.

Valuable, not imitable, not rare, but organization embedded
C.

Valuable, rare, not imitable, organization embedded
D.

Valuable, rare, easy to imitate and organization embedded

2 points

QUESTION 24

Controlling the foreign operations through a global area division structure fits best MNCs which adopt a a the standartization approach (global strategy).

True

False

2 points

QUESTION 25

One of the important features of the industry based view framework is the use of VRIO analysis to understand the firm competitive advantage.

True

False

2 points

QUESTION 26

A born global company is a company that most of its top managers were born outside the country where the headquarter is located.

True

False

2 points

QUESTION 27

Given the right to use a firm’s proprietary technology directly to a partner in a foreign market, in return for some type of payment is:

A Strategic Alliance

Direct exporting.

Licensing

Franchising.

2 points

QUESTION 28

An international division structure is the best organizational structure for an MNC that is implementing a global standardization strategy.

True

False

2 points

QUESTION 29

In Globalization 4.0 it is expected that individuals and entrepreneurs will lead the globalization process.

True

False

2 points

QUESTION 30

All of the following are not true about a joint venture except:
A.

The partners in the joint venture must invest equally in the venture
B.

Creation of a new legally independent entity is required
C.

Can’t have more than two partners
D.

Joint venture must be only equity-based partnership

2 points

QUESTION 31

An organizational structure under which global operations are organized by regions of the world is referred to as a(n):
A.

Global geographic division structure
B.

Global area division structure
C.

Regional division structure
D.

Country based division structure

2 points

QUESTION 32

A resource that valuable and rare, but it easy to imitate can give a company a temporary competitive advantage.

True

False

2 points

QUESTION 33

One disadvantage of licensing/franchising is that the licensor/franchisor has no strong control over how their technology or process are used.

True

False

2 points

QUESTION 34

A greenfield investment is:
A.

An international joint ventures in agriculture sector
B.

Investment in an irrigation projects in areas stricken by famine.
C.

An overseas investment in an environmentally friendly green factory.
D.

A wholly owned subsidiaries that are built from scratch in a foreign country.

2 points

QUESTION 35

The multi domestic strategy (adaptation) correspond to the low cost leadership strategy in the five forces model.

True

False

2 points

QUESTION 36

The five forces framework includes all of these forces except:

Buyer bargaining power

Industry exit barriers

Suppliers bargaining power

Industry entry barriers

2 points

QUESTION 37

Which of the following is not an example equity based mode of entry
A.

Exporting
B.

Greenfield investment
C.

Merger
D.

Joint venture

2 points

QUESTION 38

Adapting a low-cost leadership strategy by an MNC, will likely to “push” the company to focus its expansion abroad is to countries with cheap labor.

True

False

2 points

QUESTION 39

In the initial stage (“countries identification stage”), of the country selection process), we do an in depth screening using micro specific data for each country and ranking all potential countries.

True

False

2 points

QUESTION 40

To be classified as an MNC a company must have all offollowing elements, except:
A.

Major part of the profits comes from international operation
B.

Having assets (investments) in other countries.
C.

Top Managers in the company are from mix nationalities
D.

Having a strong commitment to corporate social responsibility.

2 points

QUESTION 41

All of the following are challanges that might slow the globalization process, except:
A.

backlash against capitalism
B.

The growing size and power of MNCs
C.

Rise of grass root consumer activism
D.

The growing availability of Internet accesses around the globe

2 points

QUESTION 42

Using macro level data to filter out countries and to arrive to a small number of potential countries for expansion is a part of which framework?
A.

Resource-based view.
B.

Five forces model view
C.

Industry-based view.
D.

none of the above

2 points

QUESTION 43

Delivering internationally to customers who placed orders using the company’s website, is an example of indirect exporting

True

False

2 points

QUESTION 44

Advantages of joint ventures include all of the following except:
A.

Reducing political risk factors
B.

Full control on the operation
C.

A better deployment scarce of financial resources
D.

Access to domestic knowledge

2 points

QUESTION 45

All of the following are possible benefits of globalization except:
A.

It makes more jobs available in less developed countries
B.

It makes more products affordable to many more people
C.

It creates wealth for firms and countries.
D.

It reduces nationalistic feeling across the globe

2 points

QUESTION 46

Of the following mode of entry which one provide an MNC with the highest level of control in the foreign market
A.

Greenfield investment
B.

Strategic alliance
C.

Exporting
D.

Franchaising

2 points

QUESTION 47

Which organizational structural fits best a company that combines elements of standardization strategy and local responsiveness?
A.

A global product division
B.

A matrix division structure
C.

Transnational network structure
D.

A global area division

2 points

QUESTION 48

The five forces model suggests three possible strategies: cost leadership strategy, differentiation strategy and adaptation strategy.

True

False

2 points

QUESTION 49

The most common mode of entry among manufacturing firms, that just starting an international expansion is:
A.

Franchising
B.

Joint venture
C.

Exporting
D.

Greenfield investment

2 points

QUESTION 50

Which of the following is not a determinant of supplier bargaining power (five forces model):
A.

The cost of switching suppliers
B.

Threat of forward integration
C.

Buyers propensity to use substitutes
D.

Presence of substitute inputs